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I'd blame the tax code; it makes no sense for corporations to save money. They should aim for zero every year either by investing in growth or paying it out. W
by dantheman 6y ago
I'd blame the tax code; it makes no sense for corporations to save money. They should aim for zero every year either by investing in growth or paying it out.
With the amount we pay in taxes, the ability to save is sharply limited.
- PaulDavisThe1st 6y agoThis attitude is another component in why the economy is so fragile. "It makes no sense for corporations to save money" ... as long as you think that "paying the least amount of taxes possible" is a sensible goal for a corporation. Compared with, say, contributing to the construction of a resilient, humane society in a variety of ways (including paying taxes) and being ready to deal with semi-random catastrophes quite well. Oh, also: the amount we pay in taxes, as a percentage of personal and corporate income, as well as GDP, is at a (near) historical and cross-country-comparative low.
- Antecedent 6y agoDoesn’t the personal tax code pretty strongly incentivize saving for individuals? 401ks and IRAs have preferential tax treatment.